Hiring employees in Bulgaria is an easy process when you understand the local nuances, including the minimum wage. This will help you set the correct payroll expectations and retain profitability. 

We understand that it can be tricky navigating the local landscape of a new country. Therefore, we have put together this guide on the minimum wage in Bulgaria. You’ll learn about the current minimum wage and the best practices when doing business in Bulgaria.

Here’s What to Know About the Minimum Wage in Bulgaria

From January 1, 2026, the minimum wage has been further increased to BGN 1,213 per month (approximately €620.20), representing a 12.6 % rise over the 2025 rate. Under the same standard workweek, this translates to an hourly wage of BGN 7.31. The higher wage is expected to boost earnings for around 600,000 workers and is part of the government’s effort to strengthen purchasing power and reduce in‑work poverty.

Comparison With Previous Years

To provide context, here’s a comparison of Bulgaria’s minimum wage over the past few years:

YearMonthly Minimum Wage (BGN)Monthly Minimum Wage (€)
2021650332
2022710363
2023780399
2024933477
20251,077551
20261,213620

Understanding the wage increases in the past can help you predict what might happen in the future. This will help you manage payroll when hiring employees in Bulgaria.

Penalties for Non-Compliance: Stiff Fines & Reputational Damage

Failing to meet Bulgaria’s minimum wage triggers aggressive enforcement. The General Labour Inspectorate imposes escalating penalties:

  • First time offenders: Expect fines of BGN 500–5,000 (€255–2,555) per underpaid employee.
  • Repeat violations: Penalties soar to BGN 10,000–20,000 (€5,110–10,226) per worker, plus mandatory back pay with 10% annual interest.
  • Public shaming: Companies are listed on the GLI’s Public Register of Violators. You don’t want to appear on this list since it’s damaging for recruitment and brand trust.
  • Criminal liability: Willful or large scale violations risk imprisonment for up to 3 years under the Penal Code. This is possible when there’s clear evidence of systematic underpayment.

Legal Framework and Determination

Bulgaria’s minimum wage is determined by the government through a formal decree, after consultation with the National Council for Tripartite Cooperation (NCTC). The decision takes into account economic factors such as inflation, productivity, and average wage levels. The 2025 increase was formalized through a decree issued on October 26, 2024, and the 2026 minimum wage was set by decree effective January 1, 2026.

While the minimum wage is set nationally, employers must stay informed about any sector-specific agreements or collective bargaining outcomes.

Impact on Employers and Employees

For employers, the increase in the minimum wage necessitates adjustments in payroll budgeting. Compliance with the new wage standards is mandatory, and failure to adhere can result in legal penalties.

Employers should also consider the implications for wage structures, employee morale, and competitiveness in the labor market.

In comparison, employees earning minimum wage will see an increase in their gross income. This can potentially improve their standard of living. However, it’s important to note that the net income will be affected by taxes and social security contributions.

Tips for Hiring Employees in Bulgaria

You can improve your profitability and onboarding process by considering the top hiring best practices. It will help you get the best employees at a reasonable payment rate.

Understand the Labor Market

Bulgaria boasts an educated workforce, particularly in sectors like IT, engineering, and finance. Consider the availability of talent in your industry and region when making new hires. 

We recommend utilizing local job boards, recruitment agencies, and professional networks to tap into the talent pool. Also, you need to be aware of regional differences and cultural nuances. This will give you a competitive advantage when hiring the top talent in your industry.

Leverage Government Incentives

The Bulgarian government offers various incentives for employers. This includes subsidies for hiring young or long-term unemployed individuals. These programs can help reduce hiring costs and promote social inclusion. 

It’s a good idea to stay informed about available incentives through the National Employment Agency. Try to consider how they can align with your hiring strategy.

Offer Competitive Compensation

Offering salaries above the minimum wage can attract higher quality candidates. Instead of increasing wages, you have other options to reward employees. Here are some of the top ones for your consideration:

  • Supplementary health insurance: Many employers provide private health insurance. It grants employees access to private medical facilities and specialist care beyond the state healthcare system.
  • Meal vouchers: Employers often offer meal vouchers, redeemable at various food establishments. This is usually up to BGN 200 per month and provides tax-free employee benefits.
  • Flexible work hours: Flexible schedules are increasingly common. These might be remote and hybrid work models. This allows employees to balance work and personal commitments effectively.
  • Additional paid leave: Beyond the statutory 20 days, companies may offer extra paid leave based. This will help employees achieve better work-life balance and may be the reason why they want to stay loyal to your company. 
  • Transportation allowances: Companies may provide transport services, reimburse public transportation costs, or offer fuel allowances for drivers. This is ideal for attracting employees that live further away from your physical location. 
  • Wellness programs: Wellness initiatives promote a healthy lifestyle and contribute to employee satisfaction. It includes gym memberships and SPA days. 
  • Performance bonuses: Performance related bonuses are common incentives, and they might include extra holiday time or higher pay. They motivate and reward employees for their contributions.

Stay Informed on Legal Requirements

Regularly review labor laws and regulations to avoid making big mistakes. This leads to good compliance practices. That’s especially true regarding contracts, working hours, and employee benefits. 

The Bulgarian Labour Code outlines the legal framework for employment relationships. This includes requirements for written contracts and provisions for various types of leave.

Strategic Hiring Considerations: Talent Pools and Cost Controls

Bulgaria’s talent landscape isn’t equal. While rural areas lean manual, cities like Sofia and Plovdiv overflow with tech and language specialists. Here’s a table summarizing the differences:

Talent ClusterKey Skills AvailableSalary Premium vs. Min.Cost-Saving Strategy
SofiaIT, blockchain, SaaS80–120%Hybrid remote models and equity incentives
Plovdiv/VarnaEngineering, logistics40–70%Shift-sharing and productivity bonuses
Rural (Ruse, Burgas)Agriculture, manufacturing10–25%Automation investments and seasonal visas

The Outlook and More Changes Ahead

This wage hike isn’t the finale. Bulgaria aims to join the Eurozone by January 1st, 2026. This potentially aligns wages with regional peers like Romania (€814/month).

The EU’s Adequate Minimum Wage Directive also pressures members to hit 50–60% of median wages. At the time of writing, Bulgaria is at around 43%.

Here’s your action plan to get ready for future changes:

  • Audit payroll now for new minimum wage compliance.
  • Model 2026 scenarios at BGN 1,150–1,200/month.
  • Lock in EOR partnerships for Q3/Q4 seasonal hiring.

Hire Employees in Bulgaria With Our Help

The minimum wage increases in Bulgaria might increase your payroll requirements, but costs should be lower than neighboring countries like Croatia or Greece. Bulgaria is still an excellent country to hire employees.

If you’re a foreign company or lack a local entity, consider using an Employer of Record (EOR) service. An EOR can handle legal and administrative employment tasks. Top examples include payroll, taxes, and compliance with local labor laws.

Do you want to use a professional EOR that has experience in Bulgaria? Then take advantage of our Employer of Record Service in Bulgaria. We’ll offer support to save you money and time.